About Ares Capital (NASDAQ:ARCC)
Ares Capital Corporation is a specialty finance company. The Company operates as a closed-end, non-diversified management investment company. The Company's investment objective is to generate both current income and capital appreciation through debt and equity investments. It invests primarily in the United States middle-market companies. It may from time to time invest in larger or smaller (in particular, for investments in early-stage and/or venture capital-backed) companies. It invests primarily in first lien senior secured loans (including unitranche loans, which are loans that combine both senior and mezzanine debt, generally in a first lien position), second lien senior secured loans, and mezzanine debt, which in some cases includes an equity component. It invests in various industries, such as automotive services, business services, consumer products, and containers and packaging. Ares Capital Management LLC serves as its investment advisor.
Industry, Sector and Symbol
Industry Investors, not elsewhere classified
Sub-IndustryAsset Management & Custody Banks
SectorFinance
SymbolNASDAQ:ARCC
CUSIP04010L10
Phone212-750-7300
Debt
Debt-to-Equity Ratio0.68%
Current Ratio1.04%
Quick Ratio1.04%
Price-To-Earnings
Trailing P/E Ratio11.49
Forward P/E Ratio10.24
P/E Growth3.43
Sales & Book Value
Annual Sales$1.16 billion
Price / Sales5.87
Cash Flow$1.4387 per share
Price / Cash11.10
Book Value$16.65 per share
Price / Book0.96
Profitability
EPS (Most Recent Fiscal Year)$1.39
Net Income$667 million
Net Margins57.50%
Return on Equity8.43%
Return on Assets4.88%
Miscellaneous
EmployeesN/A
Outstanding Shares426,300,000
Ares Capital (NASDAQ:ARCC) Frequently Asked Questions
What is Ares Capital's stock symbol?
Ares Capital trades on the NASDAQ under the ticker symbol "ARCC."
How often does Ares Capital pay dividends? What is the dividend yield for Ares Capital?
Ares Capital announced a quarterly dividend on Tuesday, February 13th. Investors of record on Thursday, March 15th will be paid a dividend of $0.38 per share on Friday, March 30th. This represents a $1.52 annualized dividend and a yield of 9.52%. The ex-dividend date of this dividend is Wednesday, March 14th. View Ares Capital's Dividend History.
How will Ares Capital's stock buyback program work?
Ares Capital announced that its board has approved a stock repurchase program on Friday, April 7th 2017, which authorizes the company to buyback $300,000,000.00 in outstanding shares, according to EventVestor. This buyback authorization authorizes the company to purchase shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its stock is undervalued.
How were Ares Capital's earnings last quarter?
Ares Capital (NASDAQ:ARCC) posted its quarterly earnings results on Tuesday, February, 13th. The investment management company reported $0.38 EPS for the quarter, beating the consensus estimate of $0.37 by $0.01. The investment management company earned $307 million during the quarter, compared to analysts' expectations of $301.38 million. Ares Capital had a net margin of 57.50% and a return on equity of 8.43%. The business's quarterly revenue was up 17.6% compared to the same quarter last year. During the same period in the prior year, the company earned $0.42 earnings per share. View Ares Capital's Earnings History.
When is Ares Capital's next earnings date?
What price target have analysts set for ARCC?
11 brokers have issued 1 year price objectives for Ares Capital's shares. Their forecasts range from $15.00 to $19.50. On average, they expect Ares Capital's share price to reach $17.90 in the next twelve months. View Analyst Ratings for Ares Capital.
What are Wall Street analysts saying about Ares Capital stock?
Here are some recent quotes from research analysts about Ares Capital stock:
- 1. National Securities analysts commented, "• On Friday, March 23, President Trump signed a $1.3 trillion omnibus spending bill into law. The bill had a provision attached to it that would permit BDC’s to have a maximum regulatory D/E limit of 2.00x versus the current 1.00x level.
• This is generally good news for the sector overall, in our opinion. Senior secured leveraged loans can certainly be in a vehicle that is leveraged up to 2.00x, as evidenced by the low annual default rates and high historical recovery rates of US senior secured loans.
• Generally speaking, we already have existing blueprints for how BDCs will operate with 2:1 leverage permitted: off-balance sheet joint ventures. In the JVs that many BDCs have, they typically fill these vehicles with safer, lower yielding credits and put more financial leverage on these loans in order to generate low-teens ROEs. Non-accruals have been very trivial in these JVs and returns have been stable.
• For the naysayers who think BDCs will ratchet up the risk, we think quite the opposite will happen for the good actors in the space. We think BDCs in general will be able to generate superior risk-adjusted returns on capital (RAROC) by using more financial leverage on safer credits, which in turn will create less earnings and NAV volatility.
• However, BDCs are not “out of the woods” yet with regards to having more freedom to lever up their respective balance sheets. Firstly, each BDC will need to seek shareholder approval to have the increased leverage. We do not think, and we certainly do not hope, that the bad actors in the space will be granted this permission by their shareholders.
• Additionally, banks and capital markets will largely govern what leverage is acceptable to have for the BDCs. We have heard many BDCs rain on the parade of potential share repurchases, no matter how accretive, due to getting or potentially losing an investment grade rating. For this reason, many BDCs keep D/E under 0.80x. The rating agencies weighing in on this will determine what BDCs may or may not do. Additionally, with 150% asset coverage rather than 200% asset coverage the cost of debt will likely increase and thus make it more prohibitive for BDCs to fund certain types of investments." (3/26/2018)
- 2. According to Zacks Investment Research, "ARES CAPITAL CORPORATION is a specialty finance company that is a closed-end, non-diversified management investment company. Ares Capital Corporation has elected to be regulated as a business development company under the Investment Company Act of 1940. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. Ares Capital Corporation invests primarily in first and second lien senior loans and mezzanine debt, which in some cases includes an equity component, and, to a lesser extent, in equity investments in private U.S. middle market companies. " (2/15/2018)
Who are some of Ares Capital's key competitors?
Some companies that are related to Ares Capital include Prospect Capital (PSEC), Tian Ge Interactiv (TGRVF), TPG Specialty Lending (TSLX), Golub Capital Bdc (GBDC), New Mountain Finance (NMFC), PennantPark Floating Rate (PFLT), PennantPark Investment (PNNT), Gladstone Investment (GAIN), Arlington Asset Investment (AI), Capital Southwest (CSWC), Thl Credit (TCRD), Safeguard Scientifics (SFE), Oaktree Strategic Income (OCSI), TriplePoint Venture Growth BDC (TPVG), Stellus Capital Inv (SCM), OFS Capital (OFS), Garrison Capital (GARS) and Capitala Finance (CPTA).
Who are Ares Capital's key executives?
Ares Capital's management team includes the folowing people:
- Michael J. Arougheti, Co-Chairman of the Board (Age 44)
- Bennett Rosenthal, Co-Chairman of the Board (Age 53)
- Mitchell Goldstein, Co-President (Age 50)
- Michael L. Smith, Co-President (Age 45)
- R. Kipp deVeer III, Chief Executive Officer, Director (Age 44)
- Penelope F. Roll, Chief Financial Officer (Age 51)
- Scott C. Lem, Chief Accounting Officer, Vice President, Treasurer (Age 39)
- Miriam G. Krieger, Chief Compliance Officer (Age 40)
- Joshua M. Bloomstein, Vice President, General Counsel, Secretary (Age 43)
- Michael R. McFerran, Vice President, Assistant Treasurer (Age 45)
Has Ares Capital been receiving favorable news coverage?
Media stories about ARCC stock have trended somewhat positive on Thursday, Accern Sentiment Analysis reports. Accern ranks the sentiment of news coverage by analyzing more than twenty million blog and news sources in real-time. Accern ranks coverage of companies on a scale of negative one to positive one, with scores nearest to one being the most favorable. Ares Capital earned a news sentiment score of 0.17 on Accern's scale. They also gave media stories about the investment management company an impact score of 46.42 out of 100, meaning that recent news coverage is somewhat unlikely to have an impact on the stock's share price in the near future.
How do I buy shares of Ares Capital?
Shares of ARCC can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Scottrade, Fidelity and Charles Schwab.
What is Ares Capital's stock price today?
One share of ARCC stock can currently be purchased for approximately $15.97.
How big of a company is Ares Capital?
Ares Capital has a market capitalization of $6.85 billion and generates $1.16 billion in revenue each year. The investment management company earns $667 million in net income (profit) each year or $1.39 on an earnings per share basis.
How can I contact Ares Capital?
Ares Capital's mailing address is 245 PARK AVENUE 44TH FLOOR, NEW YORK NY, 10167. The investment management company can be reached via phone at 212-750-7300 or via email at [email protected]
MarketBeat Community Rating for Ares Capital (ARCC)
MarketBeat's community ratings are surveys of what our community members think about Ares Capital and other stocks. Vote "Outperform" if you believe ARCC will outperform the S&P 500 over the long term. Vote "Underperform" if you believe ARCC will underperform the S&P 500 over the long term. You may vote once every thirty days.
Ares Capital (NASDAQ:ARCC) Price Target and Consensus Rating
(How are Consensus Ratings Calculated?) MarketBeat calculates consensus analyst ratings for stocks using the most recent rating from each Wall Street analyst that has rated a stock within the last twelve months. Each analyst's rating is normalized to a standardized rating score of 1 (sell), 2 (hold), 3 (buy) or 4 (strong buy). Analyst consensus ratings scores are calculated using the mean average of the number of normalized sell, hold, buy and strong buy ratings from Wall Street analysts. Each stock's consensus analyst rating is derived from its calculated consensus ratings score (0-1.5 = Sell, 1.5-2.5 = Hold, 2.5-3.5 = Buy, >3.5 = Strong Buy). MarketBeat's consensus price targets are a mean average of the most recent available price targets set by each analyst that has set a price target for the stock in the last twelve months. MarketBeat's consensus ratings and consensus price targets may differ from those calculated by other firms due to differences in methodology and available data.
11 Wall Street analysts have issued ratings and price targets for Ares Capital in the last 12 months. Their average twelve-month price target is $17.90, suggesting that the stock has a possible upside of 12.09%. The high price target for ARCC is $19.50 and the low price target for ARCC is $15.00. There are currently 2 hold ratings and 9 buy ratings for the stock, resulting in a consensus rating of "Buy."
| Today | 30 Days Ago | 90 Days Ago | 180 Days Ago |
| Consensus Rating: | Buy | Buy | Buy | Buy |
| Consensus Rating Score: | 2.82 | 2.80 | 2.80 | 2.82 |
| Ratings Breakdown: | 0 Sell Rating(s)
2 Hold Rating(s)
9 Buy Rating(s)
0 Strong Buy Rating(s) | 0 Sell Rating(s)
2 Hold Rating(s)
8 Buy Rating(s)
0 Strong Buy Rating(s) | 0 Sell Rating(s)
2 Hold Rating(s)
8 Buy Rating(s)
0 Strong Buy Rating(s) | 0 Sell Rating(s)
2 Hold Rating(s)
9 Buy Rating(s)
0 Strong Buy Rating(s) |
| Consensus Price Target: | $17.90 | $18.00 | $18.00 | $17.8889 |
| Price Target Upside: | 12.09% upside | 11.94% upside | 11.80% upside | 7.76% upside |
Ares Capital (NASDAQ:ARCC) Consensus Price Target History
Ares Capital (NASDAQ:ARCC) Analyst Ratings History
Show:
(Data available from 4/19/2016 forward)
Ares Capital (NASDAQ:ARCC) Dividend Information
Ares Capital pays an annual dividend of $1.52 per share, with a dividend yield of 9.52%. ARCC's most recent quarterly dividend payment was Friday, March 30. Ares Capital pays out 109.35% of its earnings out as a dividend.
| Most Recent Dividend: | 3/30/2018 |
| Annual Dividend: | $1.52 |
| Dividend Yield: | 9.52% |
| Payout Ratio: | 109.35% (Trailing 12 Months of Earnings)
97.44% (Based on This Year's Estimates)
93.25% (Based on Next Year's Estimates)
|
Ares Capital (NASDAQ:ARCC) Dividend History by Quarter
| Announced | Period | Amount | Yield | Ex-Dividend Date | Record Date | Payable Date |
|---|
| 2/13/2018 | quarterly | $0.38 | 9.58% | 3/14/2018 | 3/15/2018 | 3/30/2018 |
| 11/2/2017 | quarterly | $0.38 | 9.51% | 12/14/2017 | 12/15/2017 | 12/29/2017 |
| 8/2/2017 | Quarterly | $0.38 | 9.27% | 9/14/2017 | 9/15/2017 | 9/29/2017 |
| 5/3/2017 | quarterly | $0.38 | 9.05% | 6/13/2017 | 6/15/2017 | 6/30/2017 |
| 2/22/2017 | quarterly | $0.38 | 8.56% | 3/13/2017 | 3/15/2017 | 3/31/2017 |
| 11/2/2016 | quarterly | $0.38 | 9.98% | 12/13/2016 | 12/15/2016 | 12/30/2016 |
| 8/3/2016 | quarterly | $0.38 | 9.88% | 9/13/2016 | 9/15/2016 | 9/30/2016 |
| 5/4/2016 | quarterly | $0.38 | 9.96% | 6/13/2016 | 6/15/2016 | 6/30/2016 |
| 2/24/2016 | quarterly | $0.38 | | 3/11/2016 | 3/15/2016 | 3/31/2016 |
| 11/4/2015 | quarterly | $0.38 | 9.7% | 12/11/2015 | 12/15/2015 | 12/31/2015 |
| 8/4/2015 | quarterly | $0.38 | 9.53% | 9/11/2015 | 9/15/2015 | 9/30/2015 |
| 5/4/2015 | quarterly | $0.38 | 9.14% | 6/11/2015 | 6/15/2015 | 6/30/2015 |
| 2/26/2015 | quarterly | $0.38 | 8.79% | 3/11/2015 | 3/13/2015 | 3/31/2015 |
| 11/5/2014 | quarterly | $0.38 | 9.42% | 12/11/2014 | 12/15/2014 | 12/31/2014 |
| 8/5/2014 | quarterly | $0.38 | 9.17% | 9/11/2014 | 9/15/2014 | 9/30/2014 |
| 5/6/2014 | quarterly | $0.38 | 9.07% | 6/12/2014 | 6/16/2014 | 6/30/2014 |
| 2/26/2014 | quarterly | $0.38 | 8.42% | 3/12/2014 | 3/14/2014 | 3/31/2014 |
| 11/5/2013 | special | $0.05 | 8.67% | 3/12/2014 | 3/14/2014 | 3/28/2014 |
| 11/5/2013 | special | $0.05 | 8.67% | 12/12/2013 | 12/16/2013 | 12/31/2013 |
| 11/5/2013 | quarterly | $0.38 | 8.67% | 12/12/2013 | 12/16/2013 | 12/31/2013 |
| 8/6/2013 | quarterly | $0.38 | 8.8% | 9/12/2013 | 9/16/2013 | 9/30/2013 |
| 5/7/2013 | quarterly | $0.38 | 8.38% | 6/12/2013 | 6/14/2013 | 6/28/2013 |
| 2/27/2013 | quarterly | $0.38 | 8.21% | 3/13/2013 | 3/15/2013 | 3/29/2013 |
(Data available from 1/1/2013 forward)
Ares Capital (NASDAQ ARCC) Insider Trading and Institutional Ownership History
Insider Ownership Percentage: 0.49%
Institutional Ownership Percentage: 42.75%
Ares Capital (NASDAQ ARCC) Insider Trading History
| Transaction Date | Insider Name | Title | Buy/Sell | Number of Shares | Average Share Price | Total Transaction | Shares Held After Transaction | Details |
|---|
| 3/26/2018 | Steve Bartlett | Director | Buy | 200 | $15.96 | $3,192.00 | 9,400 |  |
| 3/15/2018 | Michael J Arougheti | Insider | Buy | 25,000 | $15.60 | $390,000.00 | 984,535 | |
| 2/26/2018 | Steve Bartlett | Director | Buy | 200 | $15.89 | $3,178.00 | 9,200 | |
| 2/15/2018 | Penelope F Roll | CFO | Buy | 3,000 | $15.81 | $47,430.00 | | |
| 1/23/2018 | Steve Bartlett | Director | Buy | 200 | $16.21 | $3,242.00 | 9,000 | |
| 12/21/2017 | Steve Bartlett | Director | Buy | 200 | $15.73 | $3,146.00 | 8,800 | |
| 11/21/2017 | Steve Bartlett | Director | Buy | 200 | $16.32 | $3,264.00 | 8,600 | |
| 11/3/2017 | Michael J Arougheti | Director | Buy | 8,365 | $15.85 | $132,585.25 | 937,054 | |
| 10/25/2017 | Steve Bartlett | Director | Buy | 200 | $16.60 | $3,320.00 | 8,400 | |
| 9/25/2017 | Steve Bartlett | Director | Buy | 200 | $15.77 | $3,154.00 | 8,200 | |
| 8/24/2017 | Steve Bartlett | Director | Buy | 200 | $16.12 | $3,224.00 | 8,000 | |
| 7/24/2017 | Steve Bartlett | Director | Buy | 200 | $16.48 | $3,296.00 | 7,800 | |
| 6/22/2017 | Steve Bartlett | Director | Buy | 200 | $16.21 | $3,242.00 | 7,600 | |
| 3/16/2017 | Steve Bartlett | Director | Buy | 200 | $17.29 | $3,458.00 | 7,400 | |
| 12/20/2016 | Steve Bartlett | Director | Buy | 200 | $16.00 | $3,200.00 | 7,200 | |
| 11/21/2016 | Steve Bartlett | Director | Buy | 200 | $15.78 | $3,156.00 | 7,000 | |
| 10/20/2016 | Steve Bartlett | Director | Buy | 200 | $15.37 | $3,074.00 | 6,800 | |
| 9/20/2016 | Steve Bartlett | Director | Buy | 200 | $15.60 | $3,120.00 | 6,600 | |
| 8/22/2016 | Steve Bartlett | Director | Buy | 200 | $15.72 | $3,144.00 | 6,400 | |
| 8/15/2016 | Mitchell S Goldstein | Insider | Buy | 6,472 | $15.45 | $99,992.40 | 195,358 | |
| 7/20/2016 | Steve Bartlett | Director | Buy | 200 | $14.77 | $2,954.00 | 6,200 | |
| 6/20/2016 | Steve Bartlett | Director | Buy | 200 | $14.20 | $2,840.00 | 6,000 | |
| 5/20/2016 | Steve Bartlett | Director | Buy | 200 | $15.12 | $3,024.00 | 5,800 | |
| 4/20/2016 | Steve Bartlett | Director | Buy | 200 | $15.05 | $3,010.00 | 5,600 | |
| 3/21/2016 | Steve Bartlett | Director | Buy | 200 | $14.26 | $2,852.00 | 5,400 | |
| 3/11/2016 | R. Kipp Deveer | CEO | Buy | 40,000 | $13.90 | $556,000.00 | 175,000 | |
| 3/8/2016 | Scott C Lem | CAO | Buy | 1,800 | $14.00 | $25,200.00 | 16,287 | |
| 2/26/2016 | Michael J Arougheti | EVP | Buy | 90,000 | $13.55 | $1,219,500.00 | 786,876 | |
| 2/25/2016 | Mitchell S Goldstein | Insider | Buy | 19,200 | $12.97 | $249,024.00 | 182,740 | |
| 2/22/2016 | Steve Bartlett | Director | Buy | 100 | $12.85 | $1,285.00 | 5,200 | |
| 1/20/2016 | Steve Bartlett | Director | Buy | 100 | $13.20 | $1,320.00 | 5,100 | |
| 12/21/2015 | Steve Bartlett | Director | Buy | 100 | $14.08 | $1,408.00 | 5,000 | |
| 9/14/2015 | Bates Ann Torre | Director | Buy | 8,126 | $14.87 | $120,833.62 | 11,000 | |
| 8/24/2015 | Penelope F Roll | CFO | Buy | 7,500 | $15.22 | $114,150.00 | 8,147 | |
| 8/14/2015 | Steven B Mckeever | Director | Buy | 1,835 | $16.13 | $29,598.55 | | |
| 3/12/2015 | Robert L Rosen | Director | Buy | 7,500 | $16.77 | $125,775.00 | | |
| 3/6/2015 | Robert L Rosen | Director | Buy | 5,000 | $17.57 | $87,850.00 | | |
| 3/4/2015 | Robert L Rosen | Director | Buy | 7,500 | $17.41 | $130,575.00 | | |
| 1/20/2015 | Steve Bartlett | Director | Buy | 100 | $15.97 | $1,597.00 | | |
| 12/15/2014 | Penelope F Roll | CFO | Buy | 2,000 | $15.04 | $30,080.00 | | |
| 12/4/2014 | Scott C Lem | CAO | Buy | 1,250 | $16.00 | $20,000.00 | | |
| 11/26/2014 | Scott C Lem | CAO | Buy | 1,225 | $16.33 | $20,004.25 | | |
| 11/5/2014 | Joshua M Bloomstein | VP | Buy | 2,500 | $16.20 | $40,500.00 | | |
| 11/5/2014 | Michael J Arougheti | EVP | Buy | 60,000 | $16.20 | $972,000.00 | | |
| 11/5/2014 | Penelope F Roll | CFO | Buy | 3,000 | $16.14 | $48,420.00 | | |
| 8/7/2014 | R. Kipp Deveer | CEO | Buy | 10,000 | $16.51 | $165,100.00 | | |
| 8/7/2014 | Scott C Lem | CAO | Buy | 1,462 | $16.97 | $24,810.14 | | |
| 8/6/2014 | Joshua M Bloomstein | VP | Buy | 1,500 | $16.41 | $24,615.00 | | |
| 8/6/2014 | Penelope F Roll | CFO | Buy | 6,000 | $16.43 | $98,580.00 | | |
| 8/6/2014 | Scott C Lem | CAO | Buy | 300 | $16.48 | $4,944.00 | | |
| 5/30/2014 | Scott C Lem | CAO | Buy | 287 | $17.24 | $4,947.88 | | |
| 5/16/2014 | Scott C Lem | CAO | Buy | 300 | $16.81 | $5,043.00 | | |
| 5/15/2014 | Michael Lewis Smith | EVP | Buy | 10,000 | $16.75 | $167,500.00 | 126,012 | |
| 5/13/2014 | Joshua Bloomstein | VP | Buy | 5,000 | $16.61 | $83,050.00 | 7,500 | |
| 5/9/2014 | Michael Arougheti | CEO | Buy | 50,000 | $16.60 | $830,000.00 | 583,817 | |
| 3/7/2014 | Scott C Lem | CAO | Buy | 275 | $17.88 | $4,917.00 | | |
| 12/3/2013 | Steven Mckeever | Director | Buy | 1,650 | $18.16 | $29,964.00 | 1,650 | |
| 11/13/2012 | Steve Bartlett | Director | Buy | 1,000 | $16.89 | $16,890.00 | | |
(Data available from 1/1/2013 forward)
Ares Capital (NASDAQ ARCC) News Headlines
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Ares Capital (NASDAQ:ARCC) SEC Filings
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Ares Capital (NASDAQ:ARCC) Income Statement, Balance Sheet and Cash Flow Statement
Ares Capital (NASDAQ ARCC) Stock Chart for Thursday, April, 19, 2018
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